Baked Goods Starting to Pay Off for Starbucks
Croissant sales double
By Newser Editors and Wire Services
Posted Jan 24, 2014 1:45 PM CST
Pastries seem to be paying off for Starbucks.   (AP Photo/Seth Perlman)

(Newser) – Starbucks was never exactly known for its croissants—or any of its baked goods, for that matter. Now, however, the company is seeing early signs of promise for its revamped lineup of sweets, which has made its way to about a third of its US cafes. In an earnings call yesterday, Starbucks' chief financial officer Troy Alstead said croissant sales have doubled wherever the new recipes have been introduced. The company also is selling twice as many of its new "morning buns" and cheese Danishes, although it didn't provide details on the performance of other new items.

Right now, only about a third of transactions include food, and the company wants to push up that figure. "It's a big operational change," said Alstead. "It's a big supply chain change." (Starbucks flash-freezes the baked goods right after they're made, then warms up them up in stores.) It's too early to tell whether the sales bump will stick—it could be that people were just curious and decided to give them a try. Customers who like them will have to pay a little extra; the new croissant is $2.25, up from $1.95.

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Jan 26, 2014 4:08 AM CST
After paying $3 for your bun, remember to leave a generous tip so that you can watch the staff fight over it.
Jan 25, 2014 4:45 PM CST
Of course it's starting to pay off. Starbucks could sell a few items on Monday and make enough to cover the week. Their items are way over priced as are their drinks. I can not afford to pay that much for so little and for such horrible quality of food as well. There are many many more small town mom and pop places that have much better quality and more affordable pricing.
Jan 25, 2014 1:30 PM CST
Even if I ate baked goods I wouldn't rush to Starbucks for it. I can't even tolerate the smell of that place.